Annual report pursuant to Section 13 and 15(d)

Assets Held For Sale, Disclosure

v3.7.0.1
Assets Held For Sale, Disclosure
 12 Months Ended
Dec. 31, 2015
Notes  
Assets Held For Sale, Disclosure

3.  ASSETS HELD FOR SALE:

 

The Company measures its financial assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative guidance for fair value measurements establishes a three-level hierarchy, which encourages an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the hierarchy are defined as follows:

 

·      Level 1 - inputs to the valuation techniques that are quoted prices in active markets for identical assets or liabilities

·      Level 2 - inputs to the valuation techniques that are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly

·      Level 3 - inputs to the valuation techniques that are unobservable for the assets or liabilities

 

The Company reviews the carrying amounts of long-lived assets whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. An impairment loss is recognized when the carrying amount of the long-lived asset is not recoverable and exceeds its fair value. The Company estimated the fair values of long-lived assets based on the Company’s own judgments about the assumptions that market participants would use in pricing the asset and on observable market data, when available. The Company classified these fair value measurements as Level 3.

 

Assets held for sale

 

Fair Value Measurements Using Significant

Unobservable Inputs (Level 3)

 

 

Equipment

Inventory

Total

Beginning balance

 

$

--

$

--

$

--

  Transfers in

 

 

124,424

 

62,125

 

186,549

  Disposals

 

 

(98,549)

 

(46,000)

 

(144,549)

Ending balance

 

$

25,875

$

16,125

$

42,000

Impairment losses recognized

 

$

62,554

$

123,514

$

186,068

 

The Company entered into a Letter of Intent with the licensee stating that assets consisting of equipment and inventory were sold in the first quarter of 2016 in the amount of $25,000.